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Employee turnover

What is employee turnover?

Main HR glossary Employee turnover
Employee turnover is the rate at which employees leave a company within a given period, relative to the total workforce.

It can be calculated using the formula:

Turnover rate = (Number of employees who left / Total number of employees) × 100

Turnover includes both voluntary resignations and employer-initiated dismissals. Common reasons for high turnover include:

  • Low employee motivation: lack of career growth or dissatisfaction with working conditions.
  • Inadequate compensation: salaries that don’t align with market standards.
  • Company culture issues: workplace conflicts or poor working environments.

High turnover can be costly, leading to increased hiring and training expenses and the loss of valuable knowledge from experienced employees.

To reduce turnover, companies can implement retention strategies, improve working conditions, conduct regular employee satisfaction surveys, and provide professional growth opportunities.
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